PSU bank holding to be cut to 52%: Govt

The central government will bring down its holding in public sector banks (PSBs) to 52 percent in a phased manner ensuring that the capital needs of the banks are fulfilled, parliament was told on Tuesday.

Minister of State for Finance Jayant Sinha, in a written reply to a question in the Rajya Sabha, said the government will continue to support those banks which have still not been able to raise capital “with alternative strategies”.

He said the Centre has been using different criteria in different years for infusion of capital in PSBs.

In 2014-15, the criteria of Return on Assets (RoA) and Return on Equity (RoE) was used to encourage banks to be more efficient in their operations so that internal accruals increase.

Sinha also said that based on the recommendations of the RBI central board, the government has approved enlargement of six of the identification marks in currency notes by 50 percent and introduction of angular bleed-lines in banknotes of Rs.100, 500 and 1,000 denominations.

Responding to another question, Sinha said the World Bank estimates that remittances to Bangladesh from its migrant workers in India in 2013 was $6.62 billion.

“This is 0.36 percent of India’s GDP,” he added.

He said the process of remittance from one country to another is a normal economic activity, adding that India is the world’s largest recipient of remittances and was estimated to have received $71 billion in 2014.